Exam DISC-IA Practice Question 39
Study guide: Exam DISC-IA
A business's property policy, by endorsement, settles losses to its machinery at book value: cost less accumulated straight-line depreciation on the insured's books, with no salvage value. A machine bought six years ago for $70,000 and written off over a 10-year accounting life is destroyed. A machine of like kind and quality costs $90,000 today, with a physical useful life of 15 years. With a $1,000 deductible, what does the insurer pay?
- A) $27,000
- B) $41,000
- C) $53,000
- D) $89,000
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